MidMichigan Health posts $1.6M operating loss amid mounting expenses

Midland-based MidMichigan Health's operating performance decreased in the first quarter ended Sept. 30 as expenses related to its Epic transition, inpatient admissions and supplies grew.

The nonprofit health system reported a $1.6 million operating loss in the first quarter of this fiscal year, compared to operating income of $6.4 million in the same period last year.

MidMichigan Health attributed the decreased operating performance to rising expenses in a recent financial filing. The system's expenses grew 5.9 percent year over year to $198.7 million in the first quarter, up from $187.8 million in the same period a year prior. MidMichigan Health attributed the spike to the opening of MidMichigan Medical Center-Mt. Pleasant (Mich.) in February, as well as supplies cost and Epic training wages.

While MidMichigan did see revenue increase year over year to $197.2 million in the three months ended Sept. 30, up from $194.1 million in the same period a year before, it could not offset expenses.

MidMichigan Health said it "is in the process of adjusting expenses to net patient service revenue levels. Actions will begin to be taken during the second quarter."

The system also reported its Epic implementation has "gone very well" and is stable at four of its five medical centers.  

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